Texas SB841 amends the Property Code to clarify trust fund beneficiaries and restrict the enforcement of assignments of interest in unpaid trust.

Texas SB841 amends the Property Code to specify that artisans, laborers, mechanics, contractors, subcontractors, or materialmen who contribute to the construction or repair of an improvement on specific real property, or their assignees, are beneficiaries of any trust funds related to the improvement. The bill also adds a new section prohibiting the enforcement of an assignment of a beneficiary's interest in unpaid trust funds unless the assignment is made in writing after the assignee has paid the beneficiary and is not part of the beneficiary's construction contract.

Texas SB841 amends the Property Code to clarify trust fund beneficiaries and restrict the enforcement of assignments of interest in unpaid trust.

Texas SB841 amends the Property Code to specify that artisans, laborers, mechanics, contractors, subcontractors, or materialmen who contribute to the construction or repair of an improvement on specific real property, or their assignees, are beneficiaries of any trust funds related to the improvement. The bill also adds a new section prohibiting the enforcement of an assignment of a beneficiary's interest in unpaid trust funds unless the assignment is made in writing after the assignee has paid the beneficiary and is not part of the beneficiary's construction contract.